The number of rent rises in the UK has reached its lowest level in 11 months, according to letting agents, but is the Autumn Statement’s ban on letting agent fees going to reverse this trend?
The latest report on the private rental sector from the Association of Residential Letting Agents (ARLA) has revealed that only 18% of agents experienced a rise in rents in October, a drop from 24% in September and 32% in March.
When considering the impact of last week’s Autumn Statement on the overall property market, it is unlikely for this trend to continue. ARLA projects rents to rise significantly After the Chancellor’s decision to ban letting agent fees in England and Wales.
Furthermore, the report also revealed that the number of rental properties managed per branch dropped from 193 in September to 180 in October. Demand from prospective tenants also experienced a fall in October from 40 tenants per branch registered in September down to only 34 tenants.
“Just when rents were starting to stabilise, the Chancellor has thrown the biggest curve ball, meaning that rents will unpreventably rise when the tax changes and letting fees ban come into effect,” said David Cox, ARLA managing director.
In terms of supply and demand, this month’s findings reflect seasonal expectations and show the market is slowing in the final quarter. With fewer properties available to rent and a drop in the number of prospective tenants registering interest, tenants tend to stay in their current properties until the New Year arrives.”